Yes, We’re Going to Ask Where Your Money Came From. Here’s Why.
From 1 July 2026, new laws require us to ask questions about your identity, your funds, and your transaction before we can act for you. It’s not us being nosy – it’s the law.
Wait… What?
Let’s be upfront about this.
From 1 July 2026, we are legally required to check that the money involved in your transaction isn’t the proceeds of crime. We have to ask where it came from. We have to verify who you are. We have to look at the details of your transaction and, in some cases, ask follow-up questions.
If that sounds a little intrusive, we understand. Nobody expects their lawyer to start asking the kinds of questions their bank asks. But that is exactly what the new laws require – and we want you to understand why before you walk through our door.
We’re not doubting you. We’re protecting everyone.
Welcome to AML – Anti-Money Laundering Laws Are Changing
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) came into force on 1 July 2026. For the first time, it brings lawyers, conveyancers, accountants, real estate agents, and other professional service providers into the same compliance framework that banks and financial institutions have operated under for years.
The reason is straightforward. Professional advisers are “gatekeepers” – we facilitate property transactions, business acquisitions, the creation of trusts and companies, and the movement of significant sums of money. Historically, that made us an attractive vehicle for people wanting to move money that shouldn’t be moved. These reforms are designed to close that gap.
From 1 July 2026, we have new legal obligations to help protect you, our firm, and the community from financial crime.
As Your Lawyers, We Are Now Required To:
● Verify your identity
Before we begin work on a regulated transaction, we must confirm that you are who you say you are. This applies to everyone – buyers, sellers, borrowers, trustees, directors, and beneficiaries alike.
● Understand the source of your funds
We need to understand where the money for your transaction is coming from. Not because we suspect anything – but because the law requires it of every client, without exception.
● Assess and manage any risks
We are required to carry out a risk assessment of your transaction and take steps to manage anything that raises a concern under the AML/CTF framework. This is an ongoing obligation – not just a tick-box at the start.
● Keep records and report suspicious activity
We must retain records of all identity verification and due diligence for seven years. And if – in very limited circumstances – we form a genuine suspicion that a transaction involves the proceeds of crime, we may be legally required to report that to AUSTRAC, Australia’s financial intelligence regulator.
What We Will Ask You For:
🪪 Identification A current, government issued photo ID – a driver’s licence, passport, or equivalent.
💰 Source of funds A brief explanation of where the funds for your transaction are coming from – for example, savings, a property sale, an inheritance, a business settlement, or a loan.
🏠 Details about your transaction Information about what you are doing and why – the nature of the transaction, the parties involved, and any structures (companies, trusts, SMSFs) through which it will be carried out.
📄 Additional information if required For some transactions – particularly those involving companies, trusts, or more complex structures – we may need further documentation to identify the real people who ultimately own or control the entities involved.
The sooner you provide this information, the sooner we can get to work. Delays in providing documentation will delay us being able to act for you, particularly where you are working towards a settlement date or contract deadline.
This Isn’t About You. It’s About Everyone.
These laws exist because money laundering, terrorism financing, and other serious financial crimes cause real harm – to real people and real communities. Property markets, business systems, and legal structures have all been exploited to move dirty money. Australia has had significant high profile cases in recent years, and the international pressure to act has been building for over two decades.
The good news is that the vast majority of clients who walk through our door have nothing to hide and everything to gain from a system that is harder to abuse. These checks protect the integrity of the transaction you are a part of. They protect the legal system. And they protect you.
Thanks for your understanding and support.
Concerned? Confused? Just Ask.
We know this is new – for you and, frankly, for much of the legal profession. If you have questions about what we need and why, we are very happy to explain it. There is no such thing as a silly question when the rules have just changed.
Does this apply to every legal matter?
No. These obligations apply to specific “designated services” – primarily property transactions, business acquisitions, trust and company formation, and the management of client funds. Matters such as personal injury claims, family law, criminal defence, and general legal advice do not typically trigger AML obligations.
What if I am a company or trust?
We will need to identify not just the company or trust itself, but the individuals behind it – the directors, trustees, and beneficial owners. This takes a little more time and documentation, so it helps to come prepared.
Is my confidential information protected?
Yes. Your solicitor-client privilege is preserved under the new laws. The obligations do not override the fundamental duty of confidentiality your lawyer owes you.
What if I don’t want to provide the information?
In that case, we may not be able to act for you on that matter. This is not a policy choice – it is a legal requirement we cannot waive.
At Fallu McMillan Lawyers, we have prepared carefully for these changes. We have enrolled with AUSTRAC, appointed an internal AML/CTF Compliance Officer, implemented a written compliance program, and updated our client intake processes across all of our Teams.
Thanks for helping us keep things clean.
Questions? Contact us today – we are happy to explain what is needed and why.
This article provides general information only and does not constitute legal advice. The new AML/CTF obligations commenced on 1 July 2026 under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth). Please contact our office to discuss how these obligations may apply to your specific transaction.
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